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82 Country Equalisation Scheme The purpose of this clause 82 is

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82 Country Equalisation Scheme The purpose of this clause 82 is

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									17 April 2003

                                                                                        Level 8
                                                                                        50 Pirie Street Adelaide
                                                                                        South Australia 5000

                                                                                        GPO Box 2605 Adelaide
                                                                                        South Australia 5001

                                                                                        Telephone (08) 8463 4444
                                                                                        Facsimile (08) 8463 4449
                                                                                        Freecall 1800 633 592

ESCOSA OPEN LETTER
                                                                                        www.escosa.sa.gov.au
                                                                                        escosa@escosa.sa.gov.au



NEW COUNTRY EQUALISATION SCHEME


On 17 April 2003, the Government introduced a new Country Equalisation Scheme (CES)
aimed at limiting the extent that retail electricity prices can vary for small customers across
South Australia. Small customers are those with electricity consumption less than 160
Megawatt-hours (MWh) per year, which equates to a retail bill of approximately $20,000.

The new CES, which replaced the previous CES set out in the Electricity Pricing Order
(EPO), is as follows:


8.2    Country Equalisation Scheme
       (a)      The purpose of this clause 8.2 is to require that a Retailer not charge a small
                country customer for prescribed retail services more than 101.7% of the price
                for the same prescribed retail services offered by the Retailer to a small city
                customer.
       (b)      A Retailer must not sell electricity to small country customers unless the
                Retailer ensures that each tariff for prescribed retail services offered to small
                city customers is also offered to small country customers without addition or
                variation, except that the price (including any discount, allowance, rebate or
                credit) specified in any tariff component charged to a small country customer
                may exceed the price specified in the same tariff component charged to a small
                city customer by not more than 1.7%.

The new CES requires retailers to offer the same price structure to small country customers
for prescribed retail services as those available to their city counterparts. Each component of
a retailer’s price to small country customers cannot exceed that charged to small city
customers by more than 1.7%.

The new CES has the same intent as the old CES, but fixes difficulties in the practical
application of the old scheme.
All retail licenses issued by ESCOSA require retailers to comply with the CES.

Revocation of final decision

The CES previously set out in the EPO required ESCOSA to set the maximum amount,
expressed in $/MWh, that retailers could charge small country customers. Pursuant with this
requirement, ESCOSA released its final decision in November 2002 (available at:
www.escosa.sa.gov.au). ESCOSA now revokes that final decision.

								
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